So far, we haven't seen the bulls invigorate themselves enough to buy this gap down, as has often been the case of late. Nonetheless, the bears seem to misplace their negative feelings for this market by never really capitalizing on the opportunities Mr. Market is trying to give it.
With us still trading in an uptrend, no new lower-lows made on the daily, and a weekly chart on the SPX that still looks pretty good, I'm not inclined to really "load-up" on the short positions. Instead, I want to look for buying opportunities to the long side and take advantage of the weakness in this market.
I jumped into PNR as I write this at $45.06. The stock took a beating this morning, but recovered nicely and trades above resistance and what I consider a critical breakout level.
The short setup is a good one as well, and one that I took last week and covered for a nice profit. But I want to wait for a move closer to $12.04 before getting short.
As always, i use red-lines on the chart to indicate my stop-loss, blue for the entry, and green for my targets.
Here's today's lazy trades long and short.
Long: Pentair (PNR)
Short: Invensense (INVN)